NASDAQ$MZTI

Marzetti Company/The · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and significant gains in gross profit and operating income.

Lancaster Colony's fiscal third quarter showed strong performance with record sales of $357.2 million, a 17.7% increase in gross profit, and a 24.7% rise in operating income. Retail sales grew by 17.1%, while Foodservice sales increased by 4.6%. Net income reached $1.05 per diluted share.

  • Consolidated net sales increased 11.2% to a third quarter record $357.2 million.
  • Retail net sales grew 17.1% to $198.4 million.
  • Foodservice net sales advanced 4.6% to $158.9 million.
  • Consolidated operating income grew 24.7% to $37.4 million.

Headline financials

Total Revenue

$357M

Previous: $321M+11.2%
EPS (adj)

$1.05

Previous: $0.81+29.6%
Capital Expenditures

-$55.6M

Previous: -$72M+22.8%
Free Cash Flow

-$26.7M

Previous: -$49.6M+46.1%
Net Income

$28.9M

Previous: $22.4M+28.8%
Operating Income

$37.4M

Previous: $30M+24.7%
Gross Profit

$90.6M

Previous: $77M+17.7%
Cash & Equivalents

$211M

Previous: $178M+18.7%
Total Assets

$1.07B

Previous: $993M+7.6%
Stock-Based Comp

$1.69M

Previous: $1.48M+14.5%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$357M

Q3 2021+11.2%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Lancaster Colony · $357M total across 2 segments · Q3 2021

  • Retail
    $198M+17.1%
  • Foodservice
    $159M+4.6%

Forward guidance

The company expects net sales to benefit from continued gains in Retail and a notable pickup in Foodservice sales. COVID-19 impacts will remain a headwind for manufacturing costs, and the upward trend in commodity costs is projected to accelerate. Ongoing cost savings programs and net price realization efforts will help to offset these higher expenses.

Tailwinds

  • Net sales are expected to benefit from continued gains in Retail for dressings and sauces sold under exclusive license agreements.
  • A notable pickup in Foodservice sales is foreseen as many national chain restaurant customers have indicated expectations for increasing consumer demand.
  • Increasing consumer demand as vaccine distribution expands.
  • Stimulus dollars are spent.
  • Warmer weather accommodates more outdoor dining.

Headwinds

  • The impacts of COVID-19 will remain a headwind for manufacturing costs.
  • The upward trend in commodity costs is projected to accelerate.
  • Higher manufacturing costs attributed to the impacts of COVID-19
  • Increased commodity costs.
  • Expenditures for Project Ascent reduced net income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-0.5%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+18.0%

Q4 2022

Best reaction

-15.6%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-6.7%-8.6%-14.0%
Q2 2026-7.7%-11.0%-5.2%
Q1 2026+9.2%+9.0%+4.0%
Q3 2025-15.6%-16.3%-13.2%
Q2 2025+8.7%+13.3%+15.3%
Q1 2025-2.4%+3.4%+0.5%
Q4 2024-12.2%-15.2%-8.0%
Q3 2024+0.0%+1.2%-3.1%
Q2 2024+10.2%+5.2%+12.2%
Q1 2024-0.1%-0.9%-2.3%
Q4 2023-11.5%-9.6%-8.5%
Q3 2023+2.8%+1.7%-4.3%
Q2 2023-3.7%-4.5%-1.7%
Q1 2023+13.9%+18.3%+15.3%
Q4 2022+18.0%+15.4%+8.7%
Q3 2022-11.2%-7.9%-19.9%
Q2 2022-3.6%-1.6%+2.0%
Q1 2022-5.5%-4.4%-11.5%
Q4 2021-1.5%-3.0%-7.8%
Q3 2021-1.1%+0.4%+1.5%
Q2 2021+0.8%+3.6%+0.8%
Q1 2021-4.8%-4.9%-2.9%
Q4 2020+3.2%+4.7%+6.4%
Q3 2020+5.1%+8.4%+15.3%
Q2 2020-2.0%-0.5%-4.3%
Q1 2020+11.4%+11.9%+13.4%
Q4 2019-7.1%-5.3%-8.0%
Q3 2019-4.8%-3.2%-4.9%
Q2 2019+0.3%+0.1%+0.4%
Q1 2019+2.1%+8.3%+13.8%
Q4 2018+6.1%+6.2%+4.8%
Q3 2018-1.1%-1.7%-1.4%
Q2 2018-0.9%-2.4%-7.0%
Q1 2018+9.9%+5.2%+6.1%
Q4 2017-6.4%-5.3%-5.2%
Q3 2017-2.7%-4.7%-3.0%
Q2 2017-13.0%-11.8%-9.9%
Q1 2017-4.0%-4.6%+3.8%
Q4 2016+5.5%+6.1%+3.5%
Q3 2016+6.3%
Q2 2016-12.7%
Q1 2016+9.0%
Q4 2015+2.1%
Q3 2015-3.4%
Q2 2015-4.1%
Q1 2015+1.2%
Q4 2014-5.2%
Q3 2014-8.0%
Q2 2014+2.4%
Q1 2014-4.9%
Q4 2013-3.8%
Q3 2013+0.1%
Q2 2013-1.1%
Q1 2013-0.6%
Q4 2012+5.2%
Q3 2012+0.0%
Q2 2012+0.2%
Q1 2012+2.6%
Q4 2009-2.0%
Q4 2011-2.0%
Q3 2011+1.3%
Q2 2011+0.2%
Q4 2010-0.2%
Q1 2011-0.2%
Q3 2010+2.6%

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